what happens to the debit?

January 3rd, 2011 by Questions

What happens to all the eliminated debit after declaring bankruptcy? Will bankruptee\’s wages be garnish while in banckrupcy to pay of creditors until all debit is resolved? Does the debit just \”disappear\” and bankruptcy only has to pay admin fees/govt. fees/etc.? Does the length of bankruptcy depend on the amount of debit?

Posted from: Alberta


One Response to “what happens to the debit?”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

For the most part each individual creditor will have to write off a good portion of the debt. That is the idea behind bankruptcy, it extinguishes the debt so that you can get back to living life the way it is meant to be lived.

However, there may be a small recovery that the creditors would receive. Now this is typically very small, but it is made up of a portion of any assets that one looses in bankruptcy, their monthly payments, tax refunds etc..

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